Rulebook on Amendments to the Rulebook on Application of the Corporate Income Tax Act
Tax news, February 2017
In this issue: Rulebook on Amendments to the Rulebook on Application of the Corporate Income Tax Act
The Rulebook on Amendments to the Rulebook on Application of the Corporate Income Tax Act (“Rulebook”) was published in the “Official Gazette of FBiH”, number 11/17, on 15 February 2017.
Rulebook entered into force on 16 February 2017.
The most important amendments introduced by the Rulebook are as follows:
- Reconciled balances of payables and receivables which are being submitted, in order to write-off and/or correct the receivables’ value, should be in accordance with the regulations on accounting and auditing of the Federation, and not in accordance with IAS/IFRS as it was regulated before;
- Items marked as 1) Position title Plant and Equipment, AOP 011 and 2) Position title Total Assets AOP 067, are not required as the mandatory part of the Report on Tax Incentives Based on Investment in Production Equipment (Form PP-810);
- Report on Tax Incentives Based on Investment in Fixed Assets (Form PP-811) shall include data from the Balance Sheet - the amounts of the current and the previous year from the Balance Sheet report, instead of the investment data;
- Deadline for submission of a Legal entity’s Statement on the Exemption from Withholding Tax (Form OP-820) is changed; instead of the 10th of the current month for the previous month, the deadline for submission of the Form OP-820 is on 20th of the current month for the previous month;
- Form OP-820 shall be verified by the income recipient, final beneficiary and by the competent authority of the Contracting State which is entitled to income taxation. If the competent authority of the State – which is income recipient, is not able to verify the Form OP-820, the taxpayer is obliged to obtain the residence certificate issued by competent authority of the State – income recipient, but not older than one year and submit it to the competent Tax Authority of FBiH, together with the Form OP-820;
- Forms: OP-820, POD 815, POD 816, POD 817, POD 818 and POD 819 shall be created in four samples - one is being sent to the Tax Authority, second belongs to a taxpayer and two samples are delivered to the income recipient;
- Forms PE 806, PE 807 and PK 814 shall be created in two samples: one is being sent to the Tax Authority and the other belongs to a taxpayer;
- In case of Reporting Withholding Tax for Tax Credit (Form PK 814), the taxpayer is required to keep in his records the evidence on payment of withholding tax outside the Bosnia and Herzegovina or withholding tax return, verified by the competent authority of Contracting State.
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